The ripple effects from Europe’s growing appetite for raw materials extend all the way to Sweden’s far north.
Thousands of residents and buildings are being uprooted in Kiruna, a city that lies 145 kilometers (90 miles) north of the Arctic Circle. The relocation project is regarded as one of the world’s most radical urban transformations.
Kiruna is physically on the move because of ground subsidence from the expansion of a sprawling underground iron ore mine. A new home is being created about 3 kilometers east of the old town as part of a multi-decade process that’s expected to be completed by 2035.
“It’s a place that would seem exotic to so many and, in a way, I guess it is, but also it is a small town like so many others — struggling with what they are struggling with and challenged by being so dependent on one company,” Jennie Sjöholm, senior lecturer at Sweden’s University of Gothenburg, told CNBC by video call.
Established 125 years ago as a city for the iron ore mining operations of state-owned firm LKAB, Kiruna is a small community that serves as both a significant European space hub and home to the world’s largest underground iron ore mine.
